A very high grade point average (GPA) is an example of ________.
A) asymmetric information
B) a credible signal
C) a credible trademark
D) adverse selection
B) a credible signal
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Suppose that India has a government budget surplus, and then goes into deficit. This change would
a. increase India's national saving and shift its supply of loanable funds left. b. increase India's national saving and shift its demand for loanable funds right. c. decrease India's national saving and shift its supply of loanable funds left. d. decrease India's national saving and shift its demand for loanable funds right.
Hughes and Cain (2011) suggest that an event or series of events occurring in 1763 doomed British policy. What happened?
(a) A series of oppressive taxes (b) A tightening and more rigorous enforcement of the Navigation Acts (c) A proclamation which limited trans-Appalachian settlement to lands once granted to colonists by crown approval (d) An act that gave the Quebec province all the land west of the Ohio River
The presence of pollution in the dry cleaning industry leads in the long run to dynamic inefficiencies because
A) people will buy fewer clothes that need dry cleaning than they otherwise would have. B) people will develop substitutes for dry cleaning that are wasteful. C) firms will be induced to leave the industry because of artificially high costs. D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning industry even though their average social cost exceeds price. E) firms whose average private cost exceeds the price will exit (or fail to enter) the dry cleaning industry even though their average social cost is less than price.
The Ford Taurus and Ford Escort product lines (both produced by Ford) use many of the same parts in their cars, and the cars are, apart from design, virtually identical to one another, except for price. This suggests
a. a balanced oligopoly b. cartel pricing c. Ford's production inefficiency d. game theory pricing e. price discrimination